Ethanol Blending Saved Consumers Rs 30/Litre During Crude Spike: Govt
UPSC / SSC current affairs note · Security
Why in news
The petroleum ministry defended India's ethanol blending programme against criticism over costs, food security, and alleged subsidies. It highlighted that blending saved consumers nearly Rs 30 per litre during the global crude price spike, and clarified that food security takes precedence over ethanol production.
Background
India has been promoting ethanol blending to reduce oil import dependence and provide cleaner fuel. The programme uses various feedstocks, including sugarcane, maize, and rice, with a target of 20% blending by 2025-26.
Key facts
Petrol would have cost around Rs 125 per litre in Delhi when global crude touched $135 per barrel if ethanol was not blended.
Consumers paid Rs 94.77 per litre due to 20% ethanol blending, resulting in nearly Rs 30 per litre savings at the pump.
Ethanol is produced from a flexible mix of approved feedstocks, not just rice.
FCI rice is used only when certified surplus stocks are available after meeting food security obligations.
FCI rice accounted for just 0.02% of ethanol production in ESY 2023-24, rising to 24.6% in ESY 2025-26.
Maize's share declined from 42.6% to nearly 36% in the same period, showing feedstock switching.
The programme uses damaged grain, broken rice, and foodgrain unfit for human consumption.
India is expanding second-generation ethanol production from agricultural residue under the Pradhan Mantri JI-VAN Yojana.
Food security obligations always take precedence over ethanol production needs.
Ethanol blending acts as insurance against global oil price shocks.
Prelims pointers
- Ethanol Blending Programme (EBP)
- National Policy on Biofuels
- Pradhan Mantri JI-VAN Yojana
- Food Corporation of India (FCI)
- National Food Security Act (NFSA)
- Public Distribution System (PDS)
- Ethanol Supply Year (ESY)
- Target of 20% ethanol blending by 2025-26
- Feedstocks: sugarcane, maize, rice, agricultural residue
- Second-generation ethanol from agricultural residue
Mains angles
- Discuss the trade-off between energy security and food security in India's ethanol blending policy.
- Critically examine the role of government subsidies in promoting ethanol blending and their impact on the exchequer.
- Analyze the feasibility of achieving 20% ethanol blending target while ensuring food security.